Midterm 1

Question 1

What is Process Design?

Answer 1

Configuring inputs and resources in a way that provides value, enhances quality, and is productive.

Question 2

What is Process Management?

Answer 2

The act of executing and controlling the productive functions of a firm.

Question 3

What is Process Control?

Answer 3

The act of monitoring a process for its efficacy.

Question 4

What is Process Improvement?

Answer 4

A proactive effort to enhance process performance

Question 5

What is Outsourcing?

Answer 5

The act of moving production to a supplier.

Question 6

What is Nearsourcing?

Answer 6

Moving production geographically closer to where products are sold.

Question 7

What is Sustainability?

Answer 7

Proactively managing to save resources and to “green” production.

Question 8

Describe Supply Chain Management

Answer 8

Firms cooperating to create value for customers.

Question 9

Describe Operations Management

Answer 9

Managing transformation processes to convert inputs into products and services.

Question 10

What are three primary flows of a supply chain?

Answer 10

Product flows, monetary flows, and information flows.

Question 11

Why are Service Supply Chains more complex?

Answer 11

The customer is the buyer and the supplier

Question 12

Describe Combining supply chain and operations

Answer 12

Moving internal operations to external suppliers, thus the transformation occurs from both us and the suppliers

Question 13

What the Four I’s?

Answer 13

Impacting, improving, innovating, and integrating.

Question 14

What is Upstream collaboration?

Answer 14

Working and collaborating with suppliers

Question 15

What is Porter’s Generic Strategies?

Answer 15

Cost, Differentiation, and Focus

Question 16

Describe Fisher’s Supply Chain Alignment Model

Answer 16

Efficient Supply Chains and Function Products - Match

Responsive Supply Chains and Interactive Products - Match

Question 17

Define agility

Answer 17

The ability of a supply chain to respond quickly to short-term market changes.

Question 18

Define adaptability

Answer 18

The capability to adjust a supply chain’s design (i.e., the supply network, manufacturing capabilities, and distribution network) to meet major structural shifts in the market.

Question 19

Define Order Winners

Answer 19

Those attributes that differentiate a company’s products.

Question 20

Define Order Qualifiers

Answer 20

Necessary attributes that allow a firm to enter into and compete in a market; a firm’s strategy must account for these necessities.

Question 21

Define Dynamic Capabilities

Answer 21

Abilities that allow a firm to adapt quickly to market changes.

Question 22

What is a transactional relationship?

Answer 22

A relationship in which the buyer has many supplier choices, does not need to share internal company information during the exchange, is purchasing a noncritical item, does not require technology innovation from the supplier, and does not expect to experience shortages in supply.

Question 23

What is a complementary relationship?

Answer 23

A relationship that occurs when companies understand that their core competencies need another firm’s competencies in order to maintain world-class service.

Question 24

What is a synergistic relationship?

Answer 24

A relationship between two companies who are committed to work together in a way that the result is greater than the sum of the individual parts.

Question 25

Define Profit impact

Answer 25

The result of either the sheer volume of spend for a particular item or the unique added value from an item.

Question 26

What does Increasing profitability through improved quality mean?

Answer 26

By providing better quality products that don’t cost you more to purchase, you can increase your selling price and increase profitability

Question 27

Define Leverage items with regard to profit impact and supply risk

Answer 27

A purchased item that has the potential to affect profit, typically because it is associated with a high level of expenditures while also having many qualified sources of supply.

Question 28

Define Critical items with regard to profit impact and supply risk

Answer 28

A purchased good that can have a big effect on profitability but only has a few qualified suppliers.

Question 29

Define Routine items with regard to profit impact and supply risk

Answer 29

A basic item or supply.

Question 30

Define Bottleneck items with regard to profit impact and supply risk

Answer 30

A purchased item with few alternate sources of supply, typically due to complex specifications requiring complex manufacturing or service processes, new technology, or untested processes.

Question 31

When is Price Analysis useful?

Answer 31

This analysis is most useful when there are many suppliers available in the marketplace

Question 32

When is Cost Analysis useful?

Answer 32

When price analysis is impractical or when price analysis alone does not allow a buyer to reach the conclusion that a price is fair and reasonable

Question 33

When is Total Cost of Ownership Analysis useful?

Answer 33

When you want to identify all of the costs in your analysis of a purchase, not just the purchase price

Question 34

How do you calculate an effective price?

Answer 34

Take the difference of time between offers, calculate the daily cost of capital (annual divided by 365)
Multiply number of days earlier x daily cost of capital x purchase price
Add to purchase price

Question 35

What are the Total Cost of Ownership Categories?

Answer 35

Purchase Price, Acquisition Costs, Ownership Costs, Postownership Costs